Sensex and Nifty face worst Samvat performance in 15 years
Benchmark indices fell nearly 8 per cent during Samvat 2082 amid geopolitical tensions and foreign investor selling.
The Sensex and Nifty 50 are set to record their poorest Samvat performance in 15 years, according to reports by Mint and Business Standard. Exchange data shows the Sensex declined by 7.9 per cent and the Nifty 50 fell 6.8 per cent during Samvat 2082, though Business Standard noted the Sensex slipped 8.4 per cent and the Nifty 50 fell 7.3 per cent.
The downturn was driven by selling from foreign portfolio investors, high crude oil prices, increasing US bond yields, and ongoing geopolitical conflict in West Asia. While benchmark indices struggled, the Nifty Smallcap 100 and Nifty Midcap 100 gained 4.5 per cent and 0.3 per cent respectively, according to Business Standard.
Analysts suggest the upcoming Samvat 2083, starting on November 8, faces challenges from inflation, interest rates, and economic growth. U R Bhat, co-founder and director of Alphaniti Fintech, said markets will remain under pressure until the West Asia crisis nears a solution.
Despite the volatility, some brokerages remain optimistic. ICICI Direct expects double-digit returns in Samvat 2083, citing improving September-quarter earnings and more attractive valuations. Kotak Neo expects the Nifty to trade between 21,700 and 26,300, recommending gradual accumulation in the 21,700 to 22,100 zone.
Sector performance varied during Samvat 2082, with the Nifty FMCG index dropping 18.3 per cent. Conversely, Capital Goods, PSU Bank, and Metal indices recorded positive returns for the sixth consecutive year, rallying between 6 per cent and 22 per cent.